RPO Myths and false information never rest, there’s really no shortage of myths in the world, even in outsourcing they exist. It’s either the facts and stories are intentionally skewed to prevent the business-minded from outsourcing, or they’re just the result of false information passed through word of mouth.

To help you sort out the myths from the reality, we’ve put together a few outsourcing myths, so you can make smart decisions.

RPO Myth #1: No strategic plan

Outsourcing teams might be enlisted at the beginning of a project or midway through the project. Whether they are there from the start or brought in to help fix an ongoing problem, they are part of the project’s strategy.

Both the organization and the outsourcing team will have a strategy and need to align these strategies at the beginning of the partnership to ensure that they work together to flow and optimize their offerings.

RPO Myth #2: Company communication breakdown

If an organization is outsourcing a team of experts for the first time, they might believe that the communication within the company or project will be disrupted or that job roles will become diluted. This doesn’t have to be the case.

By discussing and deciding the chain of project owners and team members before the project begins, there won’t be a loss of communication, as each team member will understand their individual and team role. A good outsourcing company will set up an optimal communication model for working for everyone, which ensures adequate face time and collaboration through all aspects of the project.

RPO Myth #3: Company culture is disrupted

Similar to the communications concern, some organization might be concerned that their company culture will be interrupted if an outsourcing team is brought in. Company culture is important in any organization, so it’s crucial that it doesn’t change if new individuals or teams are introduced to the company or project or organization.

Although disrupted company culture is a concern for some organization, outsourcing teams can adapt and even add to the company culture. If diluting the team dynamics is an issue, the organization should choose to near shore instead of outsource.

RPO Myth #4: There will be a conflict of interests 

A concern for some organization is that the company which is running the project will have an interest level with the outsourcing team. However, outsourcing teams aren’t there to take over. The role of an outsourced or near shored team is to offer and share their knowledge and expertise with the company, rather than make decisions and create conflict with the client. The decision-making and reporting process should be clearly outlined at the beginning of any joint collaboration.

RPO Myth #5: Only big businesses need outsourcing

Surely only big organizations have the requirement and budget for outsourcing…right? That’s incorrect. Both big and small companies can reap the benefits of outsourcing and near shoring. For example, small businesses can benefit from improved efficiency and flexibility in their organization. Outsourcing can have a direct impact on businesses in various sizes…it is not solely for larger organizations.

RPO Myth #6: Ensures company growth

A company’s growth depends on its people. If the right people are not hired or, positions remain vacant for a long time and work suffers because of it. The company’s growth is bound to be affected. Outsourcing staffing can help you fill gaps, make sure you have the right quality and quantity of people, work runs smoothly, and the company grows consistently.

Conclusion:

Outsourcing has become a major player in the growth and development of most companies worldwide, but myths and misconceptions plagued the image of outsourcing. Outsourcing has its strengths and weaknesses. However, companies who want to outsource should use Pragna outsourcing services to their advantage.

One thing that companies should remember is that outsourcing is a choice. It is not inevitable. Companies should make a cost-benefit analysis before engaging in outsourcing or hiring a third-party advisory. However, in these changing times, one challenge remains. Outsourcing companies should innovate to offer better services for their clients. Pragna provides customized RPO services, it helps other companies to bring down the Cost-Per-Hire.

Overview of Staffing Industry 2022:- 

In the last edition, We spoke about the Supply and demand of talent. As we are ending the year, Here is the overview of the year 2022. Global talent shortages are at a 15-year-high, and more than one in three US employers report difficulty filling jobs.

 The US has been facing an extreme talent shortage crisis – a crisis that has made it difficult for staffing coordinators to source quality talent for clients. A crisis that might not be leaving soon. A crisis that will require staffing agencies to revamp their recruitment approach. 

Utilizing these touchpoints just for the sake of filling the positions won’t be enough. Staffing industry managers will need to provide an uninterrupted staffing industry experience by optimizing the recruitment process for the channel that suits the talent perfectly.

Recessions lead to Layoffs

In Late 2022 Widespread hiring froze, this was the primary sign that something went wrong. Cost reductions become a top priority for businesses when sales start to decline because they continuously monitor output. 

Global digital companies including Twitter, Meta, Salesforce, byjus, and Snapchat are all cutting positions due to various challenges. 

Over-hiring during the Pandemic

Companies across the world, including in the US, have gone on a hiring spree thinking the demand would last forever, and then end up taking the hard decision of layoff. Staffing industry redundancy, though taken up as a contingent plan, may eventually become the reason why cash outflow may go higher than the inflow based on the market conditions.

Unstable economy

The new normal that everybody was speculating about is now upon us, but with another unexpected crisis of the Ukraine-Russia war. All these reasons have led to inflation and lesser investment budgets. America’s inflation rate—now at a 40-year-high—will remain high well into early 2023. Since labor comprises as much as 70% of total US business costs, sustained consumer price inflation typically requires sustained wage inflation. 

Prediction 2023

 What a year 2022 has been so far. From the Great Resignation to resources ghosting, the dominant themes were record job opportunities, acute talent shortages, and candidates having the upper hand. But as the year draws to a close, the great hiring boom appears to be over, as fears of a recession in the last quarter. So, what’s in store for 2023? Let’s look at the new predictions & what lies beyond in  Staffing industry.

Great Rebalance

Great rebalancing. Global economic dominance will shift away from the US and towards developing nations, and the digital economy will continue to grow. According to Morel, these three fundamental factors will result in a “Great Rebalance” that will redefine the world’s economic landscape. He also emphasizes the necessity for governments and companies to have long-term plans and the possibility of heightened volatility.

Hybrid under threat and Re-Open Communication

It is also likely that workers who have gotten used to making demands of employers and having those demands met will lose their bargaining power. The market has changed, and employees won’t want to risk rocking the boat. Whatever happens with hybrids, the office will continue to play an important role – if only we let it. Once revered as the place for people to collaborate and communicate openly before the pandemic ever happened. 

More AI Technology

Although marketers will always exist… I hope… In the field of hiring, AI will keep gaining momentum. The iconic “ATS bot” legend and folklore might unexpectedly come to pass. However, there are a number of areas in which such solutions cannot provide the same outcomes as a human recruiter, for easier and larger volume purchase requisition, AI will undoubtedly be a more significant participant in the hiring sector. These tools won’t completely replace recruiter, but they will be the more prevalent tool.

Fewer Layoffs

Could it be true? Call it the hope, but I’m keeping my fingers crossed that the pattern of large layoffs will start to wane by the second quarter of 2023. It’s really no surprise that The IT businesses had significant hypergrowth during the epidemic before even being completely wiped out in 2022. Even if some firms have reduced their workforces, this trend is projected to continue through the first half of 2023 before slowing by the summer of that year. Would the trend toward rapid growth eventually reverse? Probably not. But will employment increase? … Only time can tell.